A look beneath the surface of the gold stock correction

As the gold stock correction continues, HUI’s ratios to the gold price and S&P 500 do not yet indicate an end to the process

The gold stock correction is thus far a routine technical correction. If it remains routine (there is an ‘off the hook’ lower probability target much lower) it has already done a good chunk of corrective work. But there are no hints by its leadership internals in the form of the HUI/Gold ratio and the HUI/SPX ratio that the correction is ending just yet.

As we noted in an NFTRH+ update last week, the HUI/Gold ratio would have needed to quickly reverse back above the SMA 50 in order to keep things as routine as they have been since the rally began. But that did not happen and now while still routine, the gold stock correction is indicated to be something more pronounced than any since Q4, 2022.

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